Paige Inc.has a division that makes paint and another division that constructs subdivisions.The paint division incurs the following costs for one gallon of paint:
The Paint Division can make 1,000,000 gallons per year,and expects to produce 1,000,000 gallons next year.The construction division currently buys 200,000 gallons of paint from an outside supplier for $5.20 per gallon (the same price that the Paint Division receives).
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